Market sources indicate that memory module maker Transcend Information recently notified its customers that key suppliers SanDisk and Samsung Electronics have informed the company of a sharp reduction in chip supply. The company reported that costs had already surged by 50% to 100% the previous week, warning that severe supply-demand imbalances could persist for at least three to five months.
In response, Transcend stated that the information circulated was part of its sales team's communication to customers about current market conditions and does not represent the company's official position. The company also added that the message does not fully reflect the actual situation, but acknowledged that supply in the industry has indeed tightened in recent weeks and asked for customer understanding.
According to sources, mounting pressure from distributors for expedited deliveries has prompted Transcend to brief customers on the latest solid-state drive (SSD) supply situation. The company revealed that chip allocations for the fourth quarter of 2025 have been drastically reduced, and no new chip shipments have arrived since October 2025. Furthermore, major NAND flash suppliers informed the company the previous week of further delivery delays.
Driven by rising demand from large-scale data center deployments, cloud service providers have ramped up procurement, leading major memory chip manufacturers to prioritize shipments to these customers. As a result, prices have surged, and supply has become extremely tight. The market is now facing a severe shortage of DDR4 and DDR5 DRAM, as well as NAND chips used in SSDs, SD cards, and microSD cards.
Regarding pricing, the company's communication stated that costs were reported to have surged by 50% to 100% the previous week alone, with overall market prices continuing to climb at an unusually rapid pace. This extraordinary upward trend is expected to persist for at least the next three to five months.
The communication further indicated that Transcend's NAND flash products, including but not limited to SSDs, SD cards, and flash drives, are expected to be affected throughout the upcoming fourth quarter, with order lead times being extended substantially. Prices are also anticipated to be notably higher than both the third quarter and historical levels. Meanwhile, the company is working closely with suppliers and management teams to secure additional supply and stabilize delivery schedules.
Article edited by Jerry Chen
